Hourly to Salary: How to Convert and Compare Pay

Converting an hourly rate to an annual salary is straightforward for full-time work:

Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year

For a standard full-time employee (40 hours/week, 52 weeks/year):

Annual Salary = Hourly Rate × 2,080

Common examples:

• $15/hour × 2,080 = $31,200/year
• $20/hour × 2,080 = $41,600/year
• $25/hour × 2,080 = $52,000/year
• $30/hour × 2,080 = $62,400/year
• $50/hour × 2,080 = $104,000/year

The reverse formula to find your hourly rate from a salary:

Hourly Rate = Annual Salary ÷ 2,080

A $75,000 salary ÷ 2,080 = $36.06/hour. A $100,000 salary ÷ 2,080 = $48.08/hour.

The 2,080-hour standard assumes 40 hours/week for 52 weeks with no unpaid time off. Reality is often different.

Part-time workers: Adjust the formula for your actual hours.

• $18/hour × 25 hrs/week × 52 weeks = $23,400/year
• $22/hour × 32 hrs/week × 50 weeks = $35,200/year

Contract workers and freelancers: Factor in unpaid time (no paid holidays, no paid vacation). A $50/hour contractor who works 48 weeks (4 weeks unpaid) earns $96,000 vs a $50/hour employee with paid leave who effectively earns more per hour worked.

Teachers and academic year workers: Many teachers work 185–190 days (37–38 weeks). A teacher earning $55,000 for 37 weeks earns the equivalent of $71,000 on a 52-week scale — or about $34/hour at 40 hrs/week. However, many teachers work considerably more than 40 hours/week.

Hourly pay and salaried pay each have distinct pros and cons beyond the dollar figure:

Hourly advantages:

• Overtime pay (1.5× for hours over 40/week under FLSA)
• Pay exactly reflects hours worked — no "off the clock" expectations
• More scheduling flexibility in some industries

Salaried advantages:

• Predictable income regardless of hours
• Often comes with more benefits (401k match, PTO, health insurance)
• Career advancement path typically more defined

Watch out for: Salaried "exempt" employees are not entitled to overtime pay. A salaried manager earning $55,000 who regularly works 50–55 hours/week earns an effective hourly rate of $20–$21 — less than many hourly positions in the same field.

The federal threshold for overtime exemption in 2024 was increased to $43,888/year ($844/week). Employees earning below this must be paid overtime regardless of their salaried classification.

Whether you earn $30/hour or $62,400/year, your take-home pay will be significantly less than your gross pay after taxes:

Example: $30/hour single filer in a state with no income tax

• Gross Annual: $62,400
• Federal Income Tax: ~$5,978 (effective rate ~9.6%)
• Social Security (6.2%): $3,869
• Medicare (1.45%): $905
• Net Annual Take-Home: ~$51,648
• Net Hourly Equivalent: ~$24.83/hour

In a state with income tax, your net would be lower. A California resident earning $62,400 would pay an additional ~$1,900 in state income tax, bringing net take-home to approximately $49,700 — or about $23.90/hour actual earnings.

Use our hourly to salary calculator or salary after tax calculator to get your precise take-home estimate.

The federal minimum wage has remained $7.25/hour since 2009. Many states and cities have adopted higher minimums:

2026 state minimum wages (selected):

• California: $16.50/hour ($34,320/year full-time)
• Washington: $16.66/hour ($34,652/year)
• New York: $16.50/hour (NYC higher at $16.50+)
• Florida: $14.00/hour ($29,120/year)
• Texas: $7.25/hour (federal minimum, $15,080/year)

At $15/hour nationally, a full-time worker earns $31,200/year gross — approximately $26,000–$28,000 after FICA and federal income tax. In high-cost cities, this creates significant housing affordability challenges; HUD considers housing "affordable" when rent is 30% or less of gross income, which at $31,200/year means rent up to $780/month.